Robert said:
My question to you is: Seeing as all testing was done in a bull market, can we now use PCCRC in a bear market, or do we use other option strategies?
Cheers, Robert
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Hi Robert. Prepare to think outside the box.
The PCCRC allows you to trade Options, not so much their underlying let alone the markets. This is strange for most who are used to thinking "buy low sell high" stock price. I suggest you think of this trading as "buy low sell high" Volatility.
The price spike after earnings with good guidance, is merely a situation in which IV declines strongly, and it is likely to rise. If the stock moves up strongly, so much the better, because we also depend of Delta to profit. If instead, the stock goes sideways month, after month after month, we simply take credit with rollovers, until that trade either becomes hugely profitable with Vega or Delta gains, or simply you lose interest and you exit with a small gain due to Theta decay or a small loss.
Worried about the markets going down? With the PCCRC you need not worry. Spikes in volatility usually are associated with the panic and fear traders and institutional manager experience. They buy puts by truck loads. Arbitragers take advantage of any imbalance in the put/call relationship by selling stock and buying calls. Bottom line, your long-term options appreciate as volatility rises: you make money.
Please take a look at my presentation at the Trader's Expo in Ontario, California, about a month ago, it will make my approach clearer.
http://tinyurl.com/5o38es
BTW, I have the full video presentation in my private Google group for members only!
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2 comments:
Hi Juan, Your comments on RET echo my sentiments exactly.
I have sent an email to Rich, as I cannot justify, let alone afford this $2995 per year add infinitum.
As I pointed out to Richard, I have still to be convinced that RET works. Like you, I bought RET in 2005, and like you, I paid for a power pack.
My backtesting at present, shows aproximately a 32% win / loss rate.
Obviously, it is more about how much you win when you win, and how much you loose when you loose.
Reading about your concerns regarding RET being taken off the market, and only supplied to proffessional institutions, with the resultant ongoing fees required in order to continue with RET and future upgrades, is certainly a dissapointment to me also.
Until I read your expose', I was of two minds. Now, I think that I could get better bang for my $3000 per year elsewhere.
As I pointed out to Rich, this pagadigm shift with RET only adds to my bottom line costs, as I treat my trading as a business, and it is a very small business at that.
I would have liked to have belonged to RET for years to come, but the minute you don't renew your annual subscription, you cannot re-subscribe.
On another note.........I have sent payment via Paypal to you for inclusion in your Yahoo web site, and the purchase of 3 DVD's. This was two weeks ago. To date I have not received any confirmation of your receipt of my money. Could you please advise receipt and despatch of the DVD's please.
Sincerely, Robert
Thank you Robert.
And I did not even realize that the fee was a yearly subscription!
Please re-post your comments below the most recent articles.
Please send me an e-mail, by your post I cannot tell even who you are. My videos are now posted in a passworded site in the internet. You should have received an e-mail inviting you to join my group. Please check your archived e-mails.
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